bp and Iberdrola Launch 25 MW Green Hydrogen Project
bp PLC
Highlights
bp and Iberdrola to launch 25 MW green hydrogen project at Castellón refinery by 2026.
Green hydrogen powered by renewable energy supports Spain’s decarbonisation.
This will reduce CO2 emissions by 23,000 tonnes per year, create 500 jobs.
bp and Iberdrola have given the green light to build a 25 MW green hydrogen plant at bp’s Castellón refinery, which will be operational by H2 (Second half of the year concerned) 2026.
This is the first joint venture between the two companies under Castellón Green Hydrogen S.L., 50/50 owned by both. The announcement was made during a July 2024 event after the final investment decision.
The project is backed by the Technology Institute of Energy (ITE) and has received €15 million from Spain’s Recovery, Transformation, and Resilience Plan, co-funded by NextGenerationEU.
bp’s hydrogen senior vice president, Felipe Arbelaez, said: “This is a big step for our hydrogen business, we focus on high-value projects that deliver on our strategy. And the partnership between bp and Iberdrola is key to making hydrogen a viable energy source for industrial decarbonisation.”
Millán Garcia-Tola, Iberdrola’s Global Director of Hydrogen, said: “This partnership will promote green hydrogen. The plant will consume 200 GWh of renewable energy per year, will help bp’s decarbonisation and will showcase Iberdrola’s experience in green hydrogen technology."
Olvido Moraleda, President of bp Energía España, said: “This is a big deal for the region’s economic and industrial transformation."
Mario Ruiz-Tagle, CEO of Iberdrola España, said: “This alliance with bp will be the trigger for the energy transition in the Valencian region. The green hydrogen will attract investment, create jobs and decarbonise industry.”
The 25 MW electrolyser will be powered by renewable electricity through a power purchase agreement (PPA) with Iberdrola, which will supply 200 GWh per year from its wind and solar projects. Plug Power will provide the electrolyser, which will produce 2,800 tonnes of green hydrogen per year. This will substitute part of the grey hydrogen used in the refinery, reducing CO2 emissions by 23,000 tonnes per year, equivalent to 5,000 cars. The project will create up to 500 jobs during construction.
bp is also looking at future opportunities to scale up the project. In subsequent phases, green hydrogen will be used in hard-to-decarbonise industries in Valencia, such as ceramics, chemicals and heavy transport, to support the region’s energy transition.
bp has also signed a letter of intent with the Valencian Government to strengthen the region’s role in the energy transition, a joint workgroup will be established to oversee the transformation of bp’s refinery into an energy hub.
Iberdrola is building long-term partnerships to decarbonise. Along with its joint venture with bp to accelerate electric mobility in Spain and Portugal, the company has partnered with Norges Bank, Masdar and others to develop renewable energy globally.
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Source: bp
